Nigeria will release its new currency into circulation on Thursday, marking the first such change in 20 years.
The policy, according to the authorities, is intended to combat instability, stop counterfeiting, and force extra funds back into the banking system.
According to the national bank of Nigeria, people are hoarding more than 80% of the currency in use.
It has advised individuals to bring their damaged naira notes to commercial banks so that they can be replaced.
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Nigerians must trade in their old banknotes before the deadline of January 31.
Many Nigerians say the government should have focused more on other measures to tackle soaring inflation in Africa’s largest economy instead of redesigning the banknotes.
The policy is likely to hit politicians who might be planning to use cash to bribe voters in Nigeria’s elections – a common campaign strategy in the country. The elections are due in February.
The release of the new notes comes barely three weeks before another change comes into effect – the limiting of cash withdrawals from banks to $225 a week for individuals and $1,200 for corporate bodies.
Source: BBC
